When it comes to expense management, there are two types of company. Those who set up tedious protocols to meet all legal requirements, and those who make things as simple as possible, even if it means ignoring certain obligations. Here are 10 practices implemented by certain companies that should not be copied.
Leaving cash available for employees
It may seem hard to believe, but in some companies, management leaves a box containing cash at the disposal of employees. The principle is simple: each employee helps himself or herself when needed, and then puts change and bills back in the box.
While this solution may seem transparent at first glance, it's not. In fact, it's difficult to know who has made what expenditure and for what purpose. In terms of security, this practice leaves a lot to be desired.
Leave the company bank card available to employees
For some companies, it's safer to leave the company credit card and its code with the employees. The principle is the same as for cash. Everyone is free to use it to pay for purchases, as long as they hand in the receipt with the card.
Making the company's bank card available to employees is risky, and the follow-up is sketchy. What's more, in logistical terms it seems complicated, since as soon as one employee grabs the card, no one else can use it. There's also the question of what happens if one of the employees forgets to put the card back.
Distribute copies of the pro card
Some managers are more imaginative than others. Instead of making a single card available to employees, they prefer to distribute a copy of the card in question by all possible means. This way, several employees can use it at the same time, at least for remote payments.
Although the process is particularly simple, it's easy to see that mass distribution can pose security problems. All it takes is an intrusion into the company's intranet system for a hacker to get hold of the credit card numbers.
Circulating credit card numbers for online purchases
To avoid any risk of fraud in the event of hacking, some companies prefer to share their credit card numbers with all their employees. This way, everyone can use it to pay for an online purchase. Post-it notes, notebooks, reminders of any kind - anything goes, as long as it's not electronically recorded.
Entrusting bank card codes to employees so that they can use them without prior authorization is a particularly risky practice. It also makes it difficult to keep track of expenses.
Hand over a cash envelope
On company trips, seminars and other events abroad, it's not uncommon for the person in charge of the trip to carry a well-stocked cash envelope. The idea here is to simplify local procedures.
Nevertheless, managing expense claims on your return may prove difficult, not to mention the risk of loss or theft on site.
Advance payment to the employee
This method is particularly widespread. The employee advances the expenses and then fills out an expense claim for reimbursement.
The concept seems obvious to many, and works very well for small expenses such as toll charges or a meal out. However, when it comes to financing a multi-day trip abroad, it's important to remember that the employee's bank account doesn't necessarily offer as much leeway as the company's. On the other hand, a private bank card doesn't have the same payment limits as a company card. What's more, a private bank card does not have the same payment limits as a company card.
The invoice mailbox
To simplify matters, some companies have chosen to install a box in which employees are required to deposit their expense receipts. This saves time for employees, who no longer have to think about who to send their documents to.
For the administrative and financial manager (RAF), on the other hand, it's a bit more tedious. He or she has to go through all the supporting documents and enter them into the computer system. Time saved on the one hand is ultimately lost on the other.
The new-generation invoice box
Lost paperwork, complicated follow-up: some companies prefer to send their supporting documents electronically. Following the same principle as the physical box, the digital invoice box collects all documents destined for the RAF.
While the risk of losing documents is lower, the time spent by the RAF managing everything is just as disproportionate as in the case of a physical box.
Computerized expense report printed and rescanned
When companies try to introduce an expense management system, they are often tempted to use the famous Excel spreads heet. The principle is simple: each employee fills in the spreadsheet, then hands it in to his or her manager, along with expense receipts.
Although the organization is better than in previous cases, the fact remains that the table has to be printed out and signed by the superior before being forwarded to the finance department. Management is therefore tedious, especially when everything has to be analyzed from paper or printed documents, then re-digitized.
Fax requests
In the digital age, some companies resist the temptation and continue to use faxes for expense reports. Although this adds another channel of communication within the company, it still seems pointless to print out a document and fax it to another department for processing.
All these methods really do exist, yet neobanks such as Anytime offer companies simple tools for optimizing expense management. Mastercard cards, a bank account and an application enable employees to make purchases freely and securely. For his part, the CFO can easily track expenses and manage the various cards remotely. Payments can then be integrated into the accounting system with just a few clicks.
